Pune e-Stock Broking Ltd IPO

Pune E - Stock Broking Limited was originally incorporated as Pune E - Stock Broking Private Limited a private limited company under the provisions of Companies Act, 1956 with the Registrar of Companies, Pune pursuant to a certificate of incorporation dated June 23, 2007 bearing Corporate Identification Number (CIN) U67120PN2007PTC130374. Pursuant to the scheme of Amalgamation under section 230 to 232 and other applicable provisions of the Companies Act, 2013, PSE securities Limited and Vraj Share Services Private Limited was merged into our Company vide order of National Company Law Tribunal, Mumbai Bench dated October 04, 2017. Consequent upon conversion of the Company into public limited, the name of the Company has changed from Pune E - Stock Broking Private Limited to Pune E - Stock Broking Limited and a fresh Certificate of Incorporation dated January 07, 2020 was issued by the Registrar of Companies, Pune. The Corporate Identification Number (CIN) of the Company changed to U67120PN2007PLC130374.

The stock broking industry, a cornerstone of global financial markets, has undergone significant transformations over the years, shaped by technological advancements, regulatory changes, and shifting market dynamics. This industry plays a pivotal role in facilitating the buying and selling of financial instruments such as stocks, bonds, derivatives, and other securities. It serves as a bridge connecting investors, both individual and institutional, with the broader capital markets. Overview of the Global Financial Markets: Global growth is projected to fall from an estimated 3.5 per cent in 2022 to 3.0 per cent in both 2023 and 2024. While the forecast for 2023 is modestly higher than predicted in the April 2023 World Economic Outlook (WEO), it remains weak by historical standards. Global headline inflation is expected to fall from 8.7 per cent in 2022 to 6.8 per cent in 2023 and 5.2 per cent in 2024. Underlying (core) inflation is projected to decline more gradually, and forecasts for inflation in 2024 have been revised upward. The J.P. Morgan Global Composite PMI Output Index fell to 51.7 in July 2023 from 52.7 in June, 2023 registering its lowest reading since January. Manufacturing output and new orders declined across all three of the product categories covered by the survey (consumer, intermediate and investment goods). Meanwhile, the services sub-sectors covered - business, consumer and financial - all registered weaker expansions of both activity and new business. Overview of the Indian Financial Markets: Within India's financial sector, the equity market stands out prominently for its advanced and globally aligned status. Over time, the Indian stock market has witnessed rapid growth, attaining a significant presence globally in terms of market capitalization, turnover, and the count of listed companies. Despite the challenges posed by the pandemic and geopolitical tensions in the previous fiscal year, the equity market has exhibited remarkable strength and resilience. The fiscal year 2023 saw a surge in IPO listings on exchanges, with companies raising record-breaking funds through initial public offerings. Simultaneously, robust domestic fund inflows were observed, marked by increased retail participation, even as foreign portfolio investor flows in equities diminished. This exceptional equity market performance can be attributed to three primary factors: -Favourable monetary policy and lower interest rates, which rendered stock investment appealing for higher potential returns. -Technological advancements that facilitated simplified market access. -Convenient access to data and the internet. India's share in the global market capitalization has been steadily increasing, positioning it as the 5th largest globally, following countries like the US, China, Japan, and Hong Kong.

Company primarily offers platform to its clients for execution of trades (Equity, Futures & Options, Currency, and Commodity) with the Stock Exchange (NSE, BSE, MCX) through CTCL (Computer to Computer Link) Terminals, Web Interface & Mobile App (Android & iOS). Company's client base includes Authorised Persons (spread across 10+ Cities) as well as Direct Clients. Total count of client was 60,640 as of March 2023. The company has 2 branch offices in Ahemdabad & Delhi. Company's business from Authorised Persons (AP) involves registration of the AP as per the requirements of SEBI & Stock Exchanges. The AP brings clients by offering all the required services like account opening, KYC, trade execution, query resolution & client servicing at his own costs. AP decides the amount of brokerage to be charged for the clients during the account opening process & based on the defined slab rates, brokerage gets charged to client at every trade. PESB retains a fixed portion of that brokerage for offering the infrastructure & back-end support. Thus, collection of all the brokerage is done by PESB accounted as Revenue from operations & it disburses the sub-brokerage on a monthly basis to the APs accounted as Expenses. Along with stock broking services, company also offers ancillary services like Margin Trading Facility, Depository Accounts, Fixed Deposit & Mutual Fund Distribution. Company is also engaged in proprietary trading which is currently 0.1% of total turnover of the company & Algorithm based trading, whereby company needs to have margin from the exchanges in F&O segment which requires company to place its fund as collateral in the form of Fixed Deposits with the exchanges. Banks provide double exposure against such Fixed Deposits created with the Banks. The foundation of PESB's growth and evolution has been shaped by the dynamic and visionary leadership of our promoters, a group of individuals who have played an instrumental role in steering the company towards its current position of prominence. These key figures include Mr. Vrajesh Krishnakumar Shah, Mr. Devendra Ramchandra Ghodnadikar, Mr. Vrajesh Navnitbhai Shah, Mr. Sandip Sunderlal Shah, and Mr. Paresh Sunderlal Shah.